Q1 2024 Earnings Presentation May 1, 2024 NYSE: DVN devonenergy.com
Key Takeaways From Our Presentation 1 Q1 PRODUCTION EXCEEDS GUIDANCE BY 4% Volumes beat top-end of guidance across all products 2 DELAWARE BASIN DRIVES Q1 OUTPERFORMANCE Improving well productivity & efficiency gains drive strong…
Our Disciplined Business Model DISCIPLINED MODERATED OIL GROWTH targets: up to 5% annually GROWTH STRATEGY Focused on growing per-share value CONSISTENT Returns-driven strategy prioritizes FREE CASH FLOW generation REINVESTMENT RATES…
Strategy Creating Significant Value for Shareholders Delivering on our promise to shareholders Cumulative uses of cash ( in billions) 14 BILLION 13.2 SINCE 2020 Industry-first cash-return framework unveiled in 2020 Strategy designed…
Portfolio Built to Deliver Sustainable Performance WILLISTON BASIN PREMIER MULTI-BASIN PORTFOLIO 61 MBOED Acreage resides in top U.S. resource plays Underpinned by world-class Delaware Basin position POWDER RIVER BASIN 18 MBOED…
Q1 2024 Executing on Our Disciplined Plan DELIVERING STRONG PRODUCTION EFFICIENT UPSTREAM CAPITAL SPENDING (MBOED) ( IN MILLIONS) 700 664 +4% 933 958 AVERAGE ADVANCING OUR PRODUCTION BEAT (VS. Q1 MIDPOINT GUIDE) 864 DISCIPLINED…
Delaware Basin Drives Q1 Outperformance PARKWAY 2024 Projects Core Focus Areas 400K New Mexico NET ACRES Texas POTATO BASIN TODD THISTLE/GAUCHO EXPECT RECORD VOLUMES IN 2024 TOTAL DELAWARE PRODUCTION (MBOED) Eddy…
Delaware Basin Operating Efficiencies Advance WELL PRODUCTIVITY ON TRACK COMPLETION EFFICIENCIES CUMULATIVE OIL VOLUMES (NORMALIZED FOR 10,000 LATERALS) COMPLETED FEET PER DAY (ALL FORMATIONS) 2,265 250 10% 2,152 UP 5% TO…
Delaware Infrastructure Buildout Supports 2024 Plan GAS PROCESSING & DOWNSTREAM LOCALIZED INFRASTRUCTURE WATER HANDLING CAPABILITIES 2 BCFD of gas processing capacity Investing 100 million annually in WaterBridge JV provides water…
Raising Production Outlook in 2024 UPDATED 2024 OUTLOOK HIGH-GRADING CAPITAL FREE CASH FLOW GROWTH TOTAL CAPITAL ( IN BILLIONS) (1) ( IN BILLIONS) 10% 15% TOTAL 655-675 3.84 3.0 VOLUMES (+2% vs. PRIOR GUIDE) (MBOED) REDUCTION…
Catalysts Underpinning 2024 Outlook 1 IMPROVED DELAWARE WELL PRODUCTIVITY Higher allocation towards core of the play in New Mexico Infrastructure progressing to support optimized plan 60% 3.3-3.6 CAPITAL ALLOCATED TO DELAWARE…
Positioned for Significant Free Cash Flow Generation Devons attractive free cash flow yield Providing an opportunity vs. broader market 2024e free cash flow yield sensitivities 2024e free cash flow yield vs. broader market 11% 9%…
Disciplined Return of Capital to Shareholders TARGET PAYOUT IN 2024 Targeting 70% CASH-RETURN payout to (% OF FREE CASH FLOW) shareholders in 2024 BALANCE SHEET Prioritizing SHARE BUYBACK program at 30% current valuation 3.0…
Significant Financial Strength & Liquidity TOTAL LIQUIDITY CASH BALANCE LOW LEVERAGE 4.1 B 1.1 B 0.7x CASH & UNDRAWN CASH POSITION NET DEBT-TO-EBITDAX CREDIT FACILITY AS OF 3/31/2024 AS OF 3/31/2024 CREDIT RATINGS DEBT…
Committed to Environmental Excellence 2023 SUSTAINABILITY REPORT HIGHLIGHTS ENVIRONMENTAL TARGETS Flared volume intensity was reduced by 77% (1) GHG EMISSIONS SCOPE 1 & 2 Scope 1 & 2 GHG emissions intensity declined by 19% (1) NET…
Compelling Valuation & Upside in Energy Energy sector weighting as % of the S&P 500 index Iran Oil Embargo 29% 30% 10% VALUATIONS REMAIN AT OF S&P 500 HISTORICALLY LOW LEVELS S&P 500 (EBITDA TTM) 25% EARNINGS Energy Market…
Devons Unique Investment Proposition DISCIPLINED STRATEGY Focused on growing per-share value Returns-driven strategy prioritizes free cash flow DISCIPLINED STRATEGY HIGH-QUALITY PORTFOLIO Acreage high-graded to the top U.S.…
AssetAppendix Overview NYSE: DVN devonenergy.com
Q1 2024 Cash Return Payout Q1 CASH RETURN PAYOUT DETAILS + Million 205 Share Repurchases in Q1 24 (Retired 4.7 million shares) + Million 143 Fixed Dividend Paid in Q1 24 (Paid 0.22 per share on 3/28/2024) + Million 82…
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